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could save. liberty mutual insurance. responsibility. what's your policy? >>> the federal deficit plunged by more than $400 in the last fiscal deficit. the sharpest drop since the end of world war ii. alison kosik is in new york to tell us why this happened. >> the federal budget deficit is at its lowest level in five years. the deficit is the difference between what the government spends and takes in. that dropped to $680 billion in 2013. to give you some perspective, during the financial crisis, it shot up above $1 trill in 2009 as the economy tanked and government bailouts became the norm. here is why it is happening. the economy is getting better over the last few years. the deficit has been shrinking. also, we are paying higher taxes. all that means more revenue for the government. the government has cut back on spending. the republicans, they still insist that the budget deficit is still too large. if they are looking for a fight, they may not get it. congress agreed to a bipartisan budget deal. mid-term elections are coming in the fall. a strengthening economy is removing m
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